fbpx
QQQ
+ 0.00
283.80
+ 0%
DIA
+ 0.00
282.13
+ 0%
SPY
+ 0.00
342.13
+ 0%
TLT
+ 0.00
160.78
+ 0%
GLD
+ 0.00
178.42
+ 0%

Why Is Branding So Important? Key Takeaways From BZ Cannabis Hour

August 7, 2020 1:51 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print More

This week's Benzinga Cannabis Hour featured the leaders of Dixie Brands and BR Brands — two companies that agreed to a $43-million reverse takeover deal just as the COVID-19 pandemic was beginning to devastate the US.

"We were admiring them as a brand [house]," BR Brands chair Andrew Schweibold said at the top of the show. "Ultimately the opportuity arose for us to combine our platforms, to maximize synergies and value for all shareholders." 

Benzinga's Patrick Lane asked why brands are so important in the cannabis space.

"When it comes to storytelling and moving the market forward — what does it mean to create a brand in this market?"

Dixie Brands President and CEO Chuck Smith said it's important to remember that the industry is in its nascent stages. 

"Over the last couple of years, we've certainly seen the demographic of the consumer expand exponentially."

The market share for infused products is starting to climb, while flower products decline, Smith said. With a whole new set of consumers, companies like Dixie and BR have to figure out what they want. 

These new consumers are coming into the market with "a broad specturm of preferences," said Smith, adding that some prefer mom-and-pop businesses.

"They're also looking for consistency, trust, quality, confidence."

Revenue has jumped during the pandemic, and customers are sticking with the tried-and-true, he said. 

"So we believe that brands play an incredibly important role going forward in this ever-evolving cannabis industry."

  • Ayr Strategies Inc. (OTCQX:AYRSF) COO Jen Drake talked up her firm's unique approach to doing a rollup of cannabis companies that were already making money. "Our view is positive cash flow is what keeps you at the table long term."
  • Pleasantrees CEO Randy Buchman discussed the "wild ride" to opening a cultivation facility and beginning his company's first harvest in May.

For more, click the link below.


Related Articles

LeafLogix CEO: Compliance Software Is Crucial For Cannabis Post-Legalization

No matter which U.S. Presidential candidate — incumbent Donald Trump or former Vice President Joe Biden — wins on Nov. 3, federal legalization of cannabis is something neither major party ticket supports.  read more

Cable Provider 4Cable To Venture Into CBD Space, Considers Two Acquisitions

4Cable TV International Inc. (PINK: CATV) is looking to acquire two CBD companies. The Port St. Lucie, Florida-based company expects to announce its final decision in the weeks to come. read more

Harborside Poised To Take Over Another California Dispensary, Acquires 50.1% Stake In FGW

Harborside Inc. (CSE: HBOR) (OTCQX: HBORF) has acquired 50.1% of FGW Haight Inc.'s equity, which holds read more

Cresco Labs CEO Discusses Cannabis Industry Challenges, Reaching Nationwide Customer Base

The main thing holding the cannabis industry back is access to capital, according to Cresco Labs Inc (OTCQX: CRLBF) CEO Charlie Bachtell. read more

Agrify CEO Urges Indoor, Climate-Controlled Cultivation To Mitigate Wildfire Damage

This Croptober, outdoor cannabis cultivators on the West Coast have been major victims of unexpected raging wildfires. read more